CHAPTER 2 –ACCOUNTING FOR PARTNERSHIP: FUNDAMENTALS

TRUE /FALSE QUESTIONS

S.No. Question
1. Interest on partners loan is to be given @12% p.a. If the deed is silent about the
rate.(T/F)

2. If the deed is silent, interest at the rate of 6% p.a. would be charged on the
drawings made by the partner.(T/F)

3. Methods of settlement of disputes among the partners can`t be part of the

partnership deed.(T/F)

Maximum number of partners in a banking firm can be 20.(T/F)

4.
Each partner carrying on business is the principal as well as the agent for all other
5. partners.(T/F)

6 Manager’s commission is shown in Profit and Loss Appropriation Account(T/F)

7 Under Fixed Capital method, any addition to capital will be shown in Partner’s
Capital Account.(T/F)

8 Drawing against capital means drawing by a partner out of his/her expected share
in the profit of the current year(T/F)

9 Current account of partners are maintained under the fluctuating capital

account(T/F)

10 Interest as a charge means interest on capital is to be allowed whether the firm

has earned profit or incurred loss(T/F)

11 The clauses of partnership deed can be altered with the consent of all the partners.
A) True B) False
12 Method of settlement of dispute among the partners can’t be part of the
partnership deed. A) True B) False

13 If some persons join hands for charitable activity, it will not be termed as
partnership. A) True B) False

KVS ZIET BHUBANESWAR 12/10/2021 1

14 If the deed is silent, interest at the rate 6%would be charged on the drawings
made by the partner. A) True B) False

15 The partnership business concern may be carried on by all the partners or any of
them acting for all. A) True B) False

ANSWER KEY
Q.NO ANSWER

1 FALSE

2 FALSE

3 FALSE

4 FALSE

5 TRUE

6 FALSE

7 TRUE

8 FALSE

9 FALSE

10 TRUE

11 TRUE

12 FALSE

13 TRUE

14 FALSE

15 TRUE

PREPARED BY THE PGTs ( COMMERCE ) OF BHUBANESWAR, GUWAHATI,

KOLKATA, RANCHI, SILCHAR AND TINSUKIA REGIONS.

KVS ZIET BHUBANESWAR 12/10/2021 2